Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-09-03
THE ID. AND O. RAILROAD SOLD.
Nc Passes into the Hands Of q Power.
ful Syndicate.

axEfISa-cAR PRIVILEGES ALSO TO Blk soIp-0essIF
As TO the DEAL-rHE NEWS IN BALTIMORE.
The practical sale OF the Baltimore and Ohio
Railroad Is now an accomplished fact A long
conference or capitalists was held yesterday OF
the ONCE OF Drexel, Morgan Co.. In New York,
ana about O'Clock last evening the following an
nouncement was made:
"A preliminary contract has been executed to
DAY between the Baltimore and Ohio Railroad Co.
Barring Bros & Co, and Brown, Shipley 4 Co,
London, and their allied houses on this side. This
contract provides for the negotiation OF S. 600 900
B. and o. consolidated rves, 8, 600 900 B. and o.
preferred stock, for the purpose OF paying on the
entire floating debt OF the company and placing It
on sound financial basiA The conditions are as
follows:
First. The vertncation OF statements, &C, as
second. That the management OF the compan
shall be placed In competent hands satisfactory to
the syndicate.
Third Tnat satisfactory contracts shall be
maue between the Baltimore and Ohio and the
otner roads for New York business which shall
remove all antag0nisns between them on the sub
(ecs anu insure the permanent working OF the
baielnore ana Ohio In entire harmony with the
esner trunk lines; also, avoid construction, or
threat OF construction, OF expensive parallel lines
north and east OF Philadelphia The houses inter-
ested on this side are DrexeL Morgan Co. Drexel
& CO., Brown Bros, and Kldder, Peabody & Co."
HOW THE DEAL WAS EFFECTED.
The negotiations by Mr.. Garrett TO save hts road
uom wreckage, which were broken on with Ives,
were continued In London with j. s. Morgan, and
the deal was carried through by Drexel, Morgan
q 20. EDWARD Lauterback gave a legal opinion
yesteroay upon the question whether The sterling
loan made oy the b and q. Railroad covered the
that fae Of n The he decided
anu on receiving this opinion the agreement, In the
nature Of preliminary contract was executed.
the parties 10 the contract are the Baltimore ami
lunDaQv n
Brown, snipiey & Co: Of London; Drexel, Morgan
Co, or New York, and Drexel & Co., OF Philadel-
pnla: The most important point in the contract
pIoVldes that the management or the company
snIii Dt placed In competent hands satisfactory
u the syndicate. Satisfactory contracts are also
70 De made with the Pennsylvania and Reading
Railroads on all business north OF Philadelphia,
ana with all the other trunk lines entering New
YORK, by which all antagonism will be removed
ana Insure the permanent working OF the Balti-
In addition to these contracts the lines In process
OF construction from Philadelphia TO New York
VIII oe suspended and the work on Staten Island
stopped. In consideration OF these contracts be-
Ing signed and with the control In their hands,
the syndicate agrees TO relieve the railroad from
us present embarrassment by providing el0.o =
floating debt as IL stands amounts 10 g, 600 600
mostly In the shape OF certificates OF indebtedness
SCRIP and notes or this amount q. OO0 600 Is said
to have matured on the first instant and was the
chlef FACTOR In bringing about the present result.
1HE OTHER BALTIMORE AND OHIO PROPERTIES.
1t Is generally believed that the Baltimore and
Ohio Telegraph Will go to the Western Union, al
though it is stated that Mr.. Garrett gave John w.
Mackay an option on the telegraph, which will ex-
undoubtedly secure the sleeping car privileges.
That j ~ Gould had some hand either In the pres
ent deal or VIII purchase the telegraph is supposed
frun the TACT that he Is said to have recently con.
Verteo S1I,OOO,0OO worth OF securities into cash.
Mr.. GARRETT's PROBABLE SUCCESSOR.
Mr.. Garrett will undoubtedly retire from the
presidency and be succeeded by practical and ex-
perienced railroad man, and the directory is to be
made up In part OF some OF the present directors
and In part OF representatives OF the various inter-
estS composing the syndicate. Al. Cassatt, vice.
president OF the Pennsylvania Railroad, and John
King, or the Erie ROAD, are mentioned as Mr. Gar
reLt'S possible successors. Mr.. King would be
more acceptable to the people OF Baltimore and the
Maryland STOCK holders
THE IVES NEGOTIATIONS.
The attempted Ives deal is naturally much
talked about In connection with the SALE and last
night Mr.. AlgernonS. sullivan counsel for assignee
Cromwell, OF Ii. :. Ives Co., said: "Rumors had
appeared In the daily papers that Mr.. Garrett was
making negotiations In London to sell his b. and
.. interests, but did not attach much importance
TO them. One reason was that was creditably
Informed that one OF the prominent members OF
n. syndicate now formed had expressed the
opinion that the Ives contract was existing and
peG.Ianent cIouI upon MI. Carrots proprietary
interest. In other words, that the purchasing
contract gave to the vendee such lien on the 4
ANA u stock that 1t would not be safe 10 buy IT, or
TO lend on 1t. wonder II he said that In order TO
dtpreciate Mr.. CARROTS appraisement OF the value
TO the assignee or Ives Co. all the value II any,
his siOcA In excess OF the contract price, In the
alternative. and at the option OF the assignee that
the latter may claim tue property from Mr.. Garrett
on ,yment OF the price named In the contract.
what course ] Will advise In the matter will
depend on the many contingencies I feel free to
exists to provide q settlement on some practical
al just basis without resort 70 legal proceed
1nga"
THE NEWS m BALTIMORE.
The news fell like thunderOolt In Baltimore
Mayor Hodges could hardly believe that Mr. Gar
reut would dispose OF the road without taking into
consideration the city OF Baltimore, which owned
81, OUO shares OF stock. Baltimore newspaper
publishes an interview With leading flnancier OF
that city, which concludes as follows: "The terms
taken as whole, may be unpalatable TO the per.
,onal pride OF the supporters OF the traditions OF
the Baltimore and OHIO Company, but they are
CONSTANT with business commOn sense. policy
that brought the property into its straits was
swept away by tneXorable necessity. The road IA
doing good business, and can make money It
has narrowly escaped the wreckerS, but / believe
IL will hereafter be In the control OF managers
Tue telegraph viii 70 TO Mr. Could II not DIRECTLY.
then his money will buy II. Pullman will get the
sleeping coaches no doubt. The revolution in the
Bal inore and Ohio has surely come, and another
American Napoleon IL travelling somewhere on the
continent"
NEUTRALITY-SUSPICIOUS. WINS
In the same paper u Observation-Disclosures In the
Baltimore and Ohio sayss 'Mr. Jno. King 1r,, OF
the Erie, Is the most popular railway manager In
the world, from the Baltimore standpoint and his
accession TO the Baltimore and Ohio presidency
would be cause for general cOngratulation. II he
is not the coming president IL will be because he
will not accept the place. Mr.. A. J. Cassatt is
talked OF Ia Philadelphia, but he Is not known In
this city as bly, manager, although very sue
cesSful railroad man. But the presidency question
is still an open one. except SO Tar that IL Is pretty
certain that he Will be new man. The syndicate
have no power 10 discuss any VI the Affairs OF the
Pennsylvania Railroad, although some OF them
interested as investors In that corporation It
Is definitely established that harmonious relations
will be maintained with the Pennsylvania and
traditional antagoniSmS will De swept away, The
Baltimore and OHIO Will engage solely In ieg1ti-
mate railroad business under the new policy. The
company will seek tor Southern railroad alliance 8
through the Richmond Terminal people, who are
friendly disposed The Baltimore and Ohto since
the collapse or Mr.. CARROTS deal with Mr. Ives and
his departure for Europe has been getting the Wig
orOuS handling OF It's finance committee and IT'S
board OF directors. They did not take hold O day
too early, and their negotiations have been In the
direction OF legitimate efforts TO meet crisis that
was Imminent The atmosphere Is clearer now.
earning capacities OF the road will doubtless De
demon trated satisfactorily by the close OF the
next fiscal year, on september SO. 1885,"
English and American Smoker.
From the Chicago Journal.
zone OF the features OF American street life
that strikes an Englishraan on first arriving
here most forcibly," said young Londoner
whose acquaintance made at the Palmer House
was simply aStOunded TO observe, on my arrival
here, tealnsterS, pOrterS, caOmen, aye even ned.